Rivian Stock Jumps on Strong EV Deliveries to Start Year
Shares of Rivian (RIVN) soared 24% in Friday trading after the electric vehicle manufacturer posted vehicle sales that were above analyst expectations for its quarter ended Dec. 31.
Rivian reported Friday that it delivered just under 14,200 EVs in the fourth quarter, bringing its annual sales volume to about 51,580 electric trucks — within reach of the company’s previous guidance. Wall Street analysts had predicted the company would have delivered something more like 13,400 EVs for the quarter and 51,000 for the year.
Also Read This:-
- Best Term Life Insurance for Seniors Over 70 IN 2025
- Low-Cost Whole Life Insurance for Seniors: Affordable Protection
- How to Choose an Insurance Agent: What You Need to Know
- Crucial Tips to Determine How Much Auto Insurance Do I Need
- Discover Which Health Insurance is Best Now! Click Here!
- What Is General Insurance and Its Types? Find Out Now!
Rivian stock had a bad 2024. Shares closed the year 40% below 2023 and nearly 90% below the company’s initial market debut at an all-time high above $100 in 2021.
Since its blockbuster IPO three years ago, the Amazon-backed EV maker has been hit by a mountain of obstacles: First, it struggled with a shortage of the computer chips it needed; next, the market grew wary of electric cars just as competition from stalwart Tesla (TSLA) began to heat up. The company has also begun a massive cost-cutting campaign, with repeated rounds of layoffs and efforts to redesign car components, to make producing them cheaper, starting as early as 2022.
Despite those efforts, however, Rivian’s operating losses increased over the past year. In its third quarter last year, Rivian’s revenue decreased for the first time since it became a public company, sliding 35% to $874 million compared to analyst expectations of $980 million as the company experienced yet another disruption on its production lines due to miscommunication with a critical supplier.
The number of deliveries in Rivian’s fourth quarter, released Friday, “confirms that supply issues were unique to Q3,” RBC Capital Markets analyst Tom Narayan wrote in a note to shareholders Friday. Narayan has a Neutral rating on the stock, and expects shares to trade around $12 over the next 12 months. The stock was trading over $16 on Friday.
And CFRA analyst Garrett Nelson reiterated his Sell rating on Rivian shares, with an $8 price target, saying the company’s “bottom-line losses will likely persist for the foreseeable future.”
